This Week on the Hill
Prior to the government shutdown at 12:01 a.m. on Saturday, the House was scheduled to be in recess this week. Members are now in D.C., awaiting possible action to reopen the federal government. The Senate is scheduled to be in session this week, but planned activities may change until a funding agreement is reached.
The Senate convened at 10 a.m. this morning and scheduled a cloture vote on a stopgap spending bill for noon (see more below). Several committees scheduled hearings this week: the Commerce, Science and Transportation Committee will hold a hearing Tuesday on surface transportation security and will hold a hearing Thursday on emergency alert systems; the Health, Education, Labor and Pensions Committee will hold a hearing Tuesday on public health threats and will hold a hearing Thursday on reauthorizing the Higher Education Act.
Fiscal Year 2018 Budget Update
The Senate approved a procedural vote on a stopgap funding bill at noon today by a vote of 81-18, setting up an expected end to the government shutdown. A vote on final passage is still needed in the Senate, before the bill goes to the House and if approved, to the President for his signature. The bill, H.R. 195, would fund the federal government through February 8, reauthorize the Children’s Health Insurance Program (CHIP) for six years, and delay several health insurance taxes passed under the Affordable Care Act. Senate Democrats agreed to the vote after accepting a deal with Senate Majority Leader Mitch McConnell (R-KY) for a commitment to floor time for an immigration debate, including legislation related to the Deferred Action for Childhood Arrivals program. That debate would occur if there is no bipartisan deal before the stopgap funding measure expires February 8.
Interior Department Previews Major Reorganization
The Department of the Interior (Interior) recently previewed a major agency reorganization, expected to be formally announced in President Trump’s fiscal year 2019 proposed budget. The draft proposal would reorganize its five bureaus/services into common regional boundaries, which would follow watersheds and geographic basins. In a video message for department employees, Secretary Ryan Zinke states that “we’re looking at reshaping our current bureau-based regional system of management and moving to a system based on ecosystems, watersheds and science, rather than the current state or regional boundaries.” The proposal would divide the country into 13 regions based on geographic basins and watersheds; Interior “regional leaders” would head up each of the 13 areas and coordinate collaboration between the department’s bureaus to make key management decisions. A map of the department’s current boundaries can be found here.
Governors Release List of Recommendations for Federal Action on Opioids
Last week the National Governors Association (NGA) released the Governors’ Recommendations for Federal Action to End the Nation’s Opioid Crisis, which outlines several key areas where federal action is critical. According to the release, the recommendations reflect the input of governors across the country and build on prior NGA recommendations released in 2016. The recommendations fall under five main categories: federal support and coordination; data and information sharing; prevention and early intervention; treatment and recovery; and enhancing support for public safety. Under federal support and coordination, the recommendations urge Congress and the Administration to increase federal funding to states for opioid/substance use disorder-related activities and to extend the duration of federal grants beyond the typical one- or two-year funding cycle to help states plan and use federal dollars more effectively.
EPA Releases Superfund Redevelopment Site List
Last Wednesday the U.S. Environmental Protection Agency (EPA) released its initial list of Superfund National Priorities List sites with the greatest expected redevelopment and commercial potential. According to EPA, the sites on the list have significant redevelopment potential based on previous outside interest, access to transportation corridors, land values, and other critical development drivers. EPA developed this list in response to the Superfund Task Force Recommendations issued in July 2017. A website on the redevelopment focus list can be found here. This new list is separate from a list released in December of Superfund sites targeted for “immediate and intense” action, which included sites in 18 states, and was also in response to the recommendations of the Superfund Task Force.
HHS Creates New Division, Unveils Conscience Protections for Healthcare Workers
Last week the Department of Health and Human Services (HHS) took several actions addressing conscience protections for healthcare workers. First, HHS announced the formation of a new Conscience and Religious Freedom Division in the HHS Office for Civil Rights. According to the department, the division was established to “restore federal enforcement of the laws that protect the fundamental and unalienable rights of conscience and religious freedom”. Additional information on the new division can be found here. Second, the Centers for Medicare and Medicaid Services issued new guidance to state Medicaid directors, rescinding 2016 guidance related to states’ ability to take certain actions against family-planning providers. Finally, the Office for Civil Rights announced a new proposed rule to enforce 25 existing statutory conscience protections for Americans involved in HHS-funded programs.
DOT Soliciting Public Comments on Multiple Autonomous Vehicle Provisions
The Department of Transportation (DOT) recently published several automated vehicle notices for public comment, as part of DOT’s efforts in advancing the release of Federal Automated Vehicle Policy (FAVP) 3.0. The department is seeking public comment from across the transportation industry, including state and local governments, to identify barriers to innovation and shape initiatives. The following notices were published on January 10: from the Federal Highway Administration, a request for information on integration of automated driving systems into the highway transportation system; from the Federal Transit Administration, a request for comments on an automated transit bus research program and a request for comments on removing barriers to transit bus automation; and from the National Highway Traffic Safety Administration, a request for comments on removing regulatory barriers for automated vehicles. The department also published draft guiding principles on data exchanges to accelerate the safe deployment of automated vehicles. In addition to these notices, the department will continue to publish additional items for public comment in the coming weeks.
Net Neutrality Bill Adds Sponsors in Senate, State AG’s File Lawsuit
Action in the Senate to use the Congressional Review Act to reverse the December action by the Federal Communications Commission (FCC) to rollback net neutrality regulations gained additional support last week. To date, the measure has the support of 49 Democrats and 1 Republican (Senator Susan Collins of Maine). A vote under the Congressional Review Act requires a minimum of 51 votes for passage. However, even if proponents achieve a Senate majority on a resolution to repeal the FCC decision, it is unlikely to pass in the House and would also face a likely presidential veto. On January 16, a coalition of 22 Attorneys General filed a multistate lawsuit to block the FCC’s rollback of net neutrality. The coalition filed a petition for review in the U.S. Court of Appeals for the D.C. Circuit, formally commencing the lawsuit against the FCC and the federal government. The Attorneys General participating in the lawsuit include New York, California, Connecticut, Delaware, Hawaii, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Mississippi, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and the District of Columbia.
Deadline Approaching for State Resource Network Competition
The National Resource Network (the Network) has launched a State Resource Network competition, focused on creating state-city partnerships that address economic, fiscal and other challenges. The states selected through the process will receive funding and support from the Network to establish their own State Resource Networks. The competition is funded by a grant from the Laura and John Arnold Foundation. Examples of projects that can be created through a State Resource Network include creating a long-term financial plan or working to ensure balanced budgets; developing a comprehensive affordable housing plan to address a shortage of options for low-income residents; or helping to improve city service delivery in public works, education, or public safety. States can apply through individual or groups of departments or agencies and must show a readiness and willingness to partner with cities to improve their economic competitiveness and fiscal stability. Click here to learn more and apply. One application per state may be submitted, and the deadline for submitting applications is January 30, 2018.
Recently Released Reports
Moneyball for Higher Education: How States Can Use Data and Evidence to Improve Student Outcomes
Results for America
Prisoners in 2016
Bureau of Justice Statistics
Medicaid and Work Requirements: New Guidance, State Waiver Details and Key Issues
Kaiser Family Foundation
Medicaid: CMS Should Take Additional Steps to Improve Assessments of Individuals' Needs for Home-and Community-Based Services
U.S. Government Accountability Office
Transportation Economic Trends 2017
Bureau of Transportation Statistics, U.S. Department of Transportation
Economic News
Federal Reserve “Beige Book” Highlights Modest Economic Growth
Information collected as part of the newest edition of the Federal Reserve’s “Beige Book” from the 12 Federal Reserve Districts mostly described modest economic growth since the last report. Reports indicated that the economy continued to expand from late November through the end of the year, with 11 Districts reporting modest to moderate gains and Dallas recording a robust increase. The outlook for 2018 remains optimistic for a majority of contacts across the country. On balance, employment continued to grow at a modest pace since the last report, and most Districts cited ongoing labor market tightness and challenges finding qualified workers across skills and sectors. Several Districts noted elevated demand for manufacturing and construction labor. Most Districts said that wages increased at a modest pace. Looking at prices, most Districts noted modest to moderate price growth since the last year; exceptions were Chicago, which noted that prices increased only slightly while San Francisco noted price inflation was down slightly.